Yes. To help reach our goal, we encourage our first-tier production and product transportation suppliers to improve energy efficiency, use renewable energy, and set science-based targets. This goal is part of our suite of GHG emissions reduction goals that are components of our Science Based Targets initiative-validated science-based target. WWF has publicly supported this goal, confirming the rigor of our goals- setting process. Since 2010, HP has decreased first-tier production supplier and product transportation-related GHG emissions intensity by 28%
GHG EMISSIONS INTENSITY REDUCTION GOAL - Reduce first-tier production supplier and product transportation-related GHG emissions intensity by 10% by 2025, compared to 2015
PROGRESS THROUGH 2019 - GHG emissions intensity decreased 3% through 2019, compared to 2015
GHG EMISSIONS REDUCTION GOAL - Help suppliers cut 2 million tonnes of carbon dioxide equivalent (CO2e) emissions between 2010 and 2025
PROGRESS THROUGH 2020 - Suppliers avoided 1.38 million tonnes of CO2e emissions
Through our Sustainability Scorecard, we set requirements for our production suppliers, including requirements related to energy use and GHG emissions performance and disclosure.
During 2020, we continued engaging with suppliers to drive positive change. For example, we provided training outlining our environmental expectations and how those connect with our Sustainability Scorecard.
We also worked with other organizations to accelerate cross-sector improvements:
• HP collaborated with the Responsible Business Alliance (RBA) to update its Code of Conduct with specifics around GHG emissions-related goal setting and reporting.
• In combination with the Renewable Energy Buyers Alliance, we worked to promote renewable energy use in supply chains.
• We continued to focus on capability building, which included a combined webinar with other companies and CDP on supplier water management and reporting.
• HP and other large technology
companies sent a joint letter to the key members of the IT supply chain to reinforce environmental expectations.
Our Energy Efficiency Program in China and Southeast Asia, implemented in collaboration with NGOs such as BSR, Natural Resources Defense Council (NRDC), the World Resources Institute, and WWF, helps suppliers to build capabilities, identify ways to improve energy efficiency, and explore the use of renewable energy.
Since 2010, participants in these and other programs have avoided 1.38 million tonnes of CO2e emissions and saved a cumulative 887 million kWh ($114 million) of electricity, including 40 million kWh ($5.1 million) in 2020.
More broadly, through CDP our production suppliers reported savings of 23 million tonnes of CO2e and $613 million from reduction initiatives implemented in 2019.4 This demonstrates the scale of ongoing GHG emissions reduction activities throughout our production supply chain, regardless of whether driven by HP’s engagement.
In 2019, the most recent year that data is available, the suppliers that make HP products generated 3.0 million tonnes of Scope 1 and Scope 2 CO2e emissions attributable to HP, 3% more than in 2018. This reflects business growth as well as the impact of two major suppliers that increased GHG emissions intensity due to expanded operations. However, the intensity of GHG emissions per HP annual revenue in 2019 decreased by 11% compared to 2015. We expect suppliers to set science-based targets and reduce absolute emissions over time.
We engaged 98% of our first-tier production suppliers, by spend, to help reduce their environmental impact. Overall, 94% reported having GHG emissions reduction-related goals, and 39% reported science-based targets. We also encourage suppliers to use renewable energy. 78% reported doing so in 2019, by spend, with 70% reporting renewable energy use goals, up from 47% the prior year.
To improve efficiency, cut costs, and reduce negative environmental impacts, we work to optimize our logistics network by consolidating shipments, identifying new routes, and shipping directly to customers or local distribution centers.
We require our product transportation suppliers to use the Global Logistics Emissions Framework, which we helped develop in 2016 with the Global Logistics Emissions Council, to standardize emission calculations. To drive progress across the industry and beyond, we are working with the Clean Cargo Working Group, Green Freight Asia, the International Air Transport Association, the United Nations Climate & Clean Air Coalition, and the U.S. Environmental Protection Agency (EPA) SmartWay program.
We continue to use SmartWay partners for 100% of our products shipped by truck in the United States and Canada. The program improves road transportation efficiency and reduces GHG emissions.
In 2020, HP won the U.S. EPA SmartWay Excellence Award for the seventh year in a row, demonstrating leadership in freight supply chain energy and environmental performance for the “Large Shipper” category in the United States.
Product transportation resulted in 1.54 million tonnes of CO2e emissions in 2020, up significantly from the prior year. This was due primarily to our increased use of air freight in response to the COVID-19 pandemic. To meet increased customer demand, including to support remote learning and working, we increased our use of air freight by 29% during 2020 to ship products in the most rapid way possible.
We source a wide range of goods and services not related directly to product manufacturing, such as staffing, telecommunications, and travel. We collaborate with nonproduction suppliers, based on size and sector, to provide training, improve reporting, and reduce GHG emissions.
In 2019, the most recent year data is available, our nonproduction suppliers reported 190,000 tonnes of Scope 1 and Scope 2 CO2e emissions attributable to HP. During that year, 77% of HP nonproduction strategic suppliers produced environmental reports, the same as in 2018. We believe this level of disclosure is partly due to our engagement with nonproduction suppliers through the CDP Supply Chain program.